**New Delhi**: The Indian semiconductor industry is positioned for growth with government initiatives and new partnerships. Jayraj Nair of Ansys discusses advancements, challenges, and the importance of simulation tools in enhancing domestic production, as the country seeks to reduce reliance on imports and foster innovation.
The semiconductor industry is pivotal to India’s technological evolution, with a growing focus on domestic production and government-supported initiatives aiming to reinforce its position in the global market. Jayraj Nair, Global Field CTO Hi-Tech and Regional CTO APAC at Ansys, shared comprehensive insights into India’s semiconductor goals, the prevailing challenges, and the significance of advanced simulation tools in fostering innovation in a recent interview.
Nair emphasised the critical importance of semiconductor chips across various sectors, including consumer electronics and defence systems. India, which currently relies heavily on imports, is poised to increase its domestic manufacturing of these integral components. The semiconductor market is expected to expand significantly, projected to reach $271.9 billion by 2032 with a compound annual growth rate (CAGR) of 26%. This growth aligns with the Indian government’s strategic initiatives aimed at ensuring the country’s autonomy in this essential industry. Key measures include the Semicon India Programme, which promotes local semiconductor production, and a groundbreaking partnership between Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corporation. This collaboration is set to establish India’s first semiconductor fabrication facility, with an investment of $10 billion dedicated to manufacturing semiconductors tailored for automotive and artificial intelligence applications.
The government has also deployed subsidy programs, covering up to 50% of project expenses to encourage semiconductor and display fabrication plants, attracting interest from local and international investors. Nair noted that semiconductors are vital for national security, supporting advanced military hardware and secure communications, underscoring India’s intention to bolster its manufacturing capacity to lessen import reliance and ensure uninterrupted supply for defence use.
Despite this momentum, India faces formidable challenges in developing a robust semiconductor ecosystem. High initial capital investments—estimated between $5-$7 billion for establishing a single chip fabrication plant—and a shortage of skilled engineers proficient in device physics and process technology hinder progress. In response, early industry participants are investing in training engineers in collaboration with educational institutions. The government, too, has joined forces with corporations and universities to refine educational curricula and enhance skills training.
The global semiconductor shortage, exacerbated by the COVID-19 pandemic, further accelerated India’s drive towards self-reliance in semiconductor production as manufacturers faced significant disruptions. Major production centres are primarily located in Taiwan, China, South Korea, and the United States, compelling nations to focus on developing their semiconductor capabilities. Ansys contributes to this evolution by providing cutting-edge simulation tools that enhance productivity and reliability in semiconductor design, thereby facilitating compliance with industry requirements.
Integral to India’s development strategy is the India Semiconductor Mission (ISM), part of the Digital India Corporation’s broader initiatives. Launched with a budget of nearly $9 billion in December 2021, this mission aims to establish a strong semiconductor and display ecosystem by encouraging cost-effective technology, particularly processes from 28nm nodes. Successful implementation is expected to bolster domestic sales and significantly increase exports, aligned with the ambitious objectives of a developed India by 2047.
Strategic programmes such as AatmaNirbhar Bharat, Chips to Startup (C2S), and the Design Linked Incentive (DLI) scheme play crucial roles in diminishing import dependency. Ansys actively supports these initiatives through its advanced simulation tools designed to bridge the skills gap in the semiconductor industry. This partnership strategy aligns with India’s goals of achieving technological self-sufficiency and securing a more substantial foothold in the global high-tech market.
The Ansys Academic Program further enhances collaboration with educational institutions, enabling thousands of universities to incorporate engineering simulation software into their curricula. By partnering with MeitY’s C2S programme, Ansys is facilitating access to industry-standard tools for research and curriculum development, thus preparing the next generation of engineers for the complexities of the semiconductor landscape.
In supporting startups, Ansys provides innovative solutions to help them meet innovation, cost, and performance goals in a competitive market. Startups, typically constrained by tight budgets, benefit from Ansys’ Startup Program, which offers affordable access to essential simulation tools and training resources.
As semiconductor designs evolve with the introduction of multi-die architectures and increasingly complex systems, advanced simulation becomes indispensable for ensuring reliability and efficiency. Ansys’ tools, including its patented Sigma Technology, are crucial for early detection of potential issues, significantly streamlining design processes.
Through partnerships with various foundries, Ansys ensures its simulation tools remain relevant and capable of supporting the latest technology nodes. Recent collaborations with companies like TSMC and NVIDIA have resulted in enhanced simulation capabilities, contributing to accelerated product innovation and reduced time-to-market.
Looking to the future, Ansys intends to expand its support for India’s semiconductor sector by continuing to provide cutting-edge tools and training. By participating in the C2S and DLI programs and facilitating collaboration between academia and industry, Ansys is poised to play a vital role in shaping India’s semiconductor landscape.
India’s vast talent pool positions it as a potential key player in the global semiconductor manufacturing arena. With the workforce poised to expand through the continuous flow of new engineering graduates and an array of supportive governmental policies, the foundation for a semiconductor revolution is being laid—echoing the transformative agricultural advancements of the past. As highlighted by Nair, the enthusiasm and capabilities of Indian engineers, now bolstered by substantial government backing, indicate a promising future for the country’s semiconductor industry.
Source: Noah Wire Services
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